EPISODE · Jul 25, 2022 · 2 MIN
The Big Mac index shows that the rand is significantly undervalued
from Die ekonomie minuut · host Waldo Krugell
Last week the Economist magazine released their latest Big Mac index. According to that, the rand is 54.5% undervalued against the US dollar. This means that the rand should actually be trading at R7.75 per dollar, rather than the R17 per dollar we see in the market. How does that work, and what does it mean? * The Economics Minute is supported by the NWU Business School.
What this episode covers
Last week the Economist magazine released their latest Big Mac index. According to that, the rand is 54.5% undervalued against the US dollar. This means that the rand should actually be trading at R7.75 per dollar, rather than the R17 per dollar we see in the market. How does that work, and what does it mean? * The Economics Minute is supported by the NWU Business School.
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The Big Mac index shows that the rand is significantly undervalued
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